Cost-volume- profit cvp is an excellent tool for analyzing, Financial Management

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Cost-volume- profit cvp is an excellent tool for analyzing

Cost-Volume- Profit Analysis

Cost-Volume- Profit (CVP) is an excellent tool for analyzing short-term financial decisions. Assume the following current information:

sales price per unit $7.50

total fixed costs $250,000

unit volume 125,000

What does the variable cost per unit need to be in order to break even (operating margin becomes $0) at this volume?

a. $7.50

b. $5.50

c. $2.00

d. $6.50

e. none of the above

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Financial Management: Cost-volume- profit cvp is an excellent tool for analyzing

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